Oracle Helps Customers Meet ESG Reporting Expectations

While the U.S. Securities and Exchange Commission (SEC) determines new requirements for Environmental, Social, and Governance (ESG) reporting, many organizations face increasing pressure from customers, investors, and employees to provide more visibility into their ESG initiatives.

In some cases, organizations are not waiting around to see what kind of regulations are introduced by the SEC. For example, a $40 billion insurance company has already aligned with the SEC’s expected requirements with the help of Oracle and PwC. This Oracle Fusion Cloud Applications customer can now track and report greenhouse gas (GHG) Protocol Scope 1 and 2 emissions in tons of carbon dioxide equivalent (tCO2e) and estimate and report upstream and downstream (GHG Protocol Scope 3) emissions. That’s possible as our end-to-end solution supports the insurance company’s ability to capture relevant data and produce detailed reports that clearly outline its progress on ESG goals.

To help other customers leverage our integrated suite of cloud applications to better track and measure ESG initiatives, we have launched five new ESG configuration guides for Oracle Fusion Applications. The new configuration guides, which are available on Oracle.com, provide step-by-step instructions to capture environmental data during day-to-day operations and build sustainability into the foundation of business processes.

The new Oracle Fusion Applications ESG configuration guides help customers with:

• Tracking Environmental Data using Invoices: Track purchases of fuel, energy, water, and waste management using Descriptive Flexfields (DFFs) on invoices in Oracle Fusion Cloud Enterprise Resource Planning (ERP). Customers can also use fuel and energy purchase data to calculate Scope 1 and Scope 2 emissions in Oracle Fusion Cloud Enterprise Performance Management (EPM) or in spreadsheets.
• Calculating Greenhouse Gas Emissions from Purchased Goods and Services: Capture suppliers’ emissions intensity and product carbon footprints using a combination of Oracle Cloud ERP and the procurement and product lifecycle management capabilities in Oracle Fusion Cloud Supply Chain & Manufacturing (SCM). Customers can also combine invoice, supplier, and item data to calculate Scope 3 emissions from purchased goods and services.
• Tracking Environmental Data using Assets: Measure the environmental performance of individual assets using the maintenance and asset capabilities in Oracle Cloud SCM to understand inefficiencies and emission sources at a granular level and drive decisions that support progress toward ESG goals.
• Managing Supplier ESG: Gather and act on ESG data from suppliers using procurement capabilities in Oracle Cloud SCM. Customers can create an ESG performance score, evaluate supplier ESG performance as part of sourcing decisions, and monitor suppliers’ ESG metrics over time.
• Capturing Environmental Attributes of Products: Support sustainable sourcing, consumption, and marketing by capturing product attributes using product lifecycle management capabilities in Oracle Cloud SCM. Customers can capture attributes such as biodegradability, recyclability, energy efficiency, water efficiency, and indoor air emissions to convey a product’s environmental and health impacts.

For companies to be successful and create meaningful progress on ESG initiatives, sustainability needs to be embedded throughout businesses processes. We are in the unique position to help customers surface insights and build on their ESG goals since our finance, HR, supply chain, and customer experience applications sit on a single integrated cloud platform. For example, a transportation update in Oracle Cloud SCM automatically populates in Oracle Cloud EPM to help ensure accurate and timely reporting.

Our integrated suite of applications enables organizations to take advantage of the cloud to break down organizational silos, standardize and automate processes, improve efficiency, expand insights, and enhance the employee and customer experience. With quarterly update cycles, customers gain access to continuous innovation as new capabilities are added every 90 days, without downtime or business disruption.

To learn more about Oracle Fusion Applications, including the Oracle Fusion Cloud ESG statement of direction, please visit: oracle.com/applications